Aid package to Israel: largest in its history

[S.R. Prozak]

http://www.haaretz.com/hasen/spages/274731.html

U.S. to give Israel $9B in loan guarantees, $1B in military aid

By Aluf Benn, Nathan Guttman (Washington) and Moti Bassok, Haaretz
Correspondents

The United States will give Israel $9 billion in loan guarantees over four
years and $1 billion in military aid, the American administration decided
Wednesday. The aid package still requires congressional approval.

Israeli officials expressed disappointement with the $1 billion in
military
aid, as Israel had requested $4 billion, Israel Radio reported.

U.S. National Security Advisor Condoleezza Rice telephoned Finance
Minister
Benjamin Netanyahu to inform him of the decision. Netanyahu expressed to
Rice
his thanks and that of the Israeli people.

The administration decided to grant Israel $1 billion more in loan
guarantees that originally requested ($8 billion), because of the positive
impression the U.S. had of the Finance Ministry's emergency economic plan
intended to revive the economy, which was presented to the White House as
a
precondition for receiving the loan guarantees. In return for receiving
the
loan guarantees, the U.S. is demanding that Israel adopt a series of
economic
reforms.

The leaders of both houses of Congress this week sent a letter to
President
George W. Bush, asking him to approve the special aid package that Israel
has
been seeking.

Pro-Israel lobbyists in Washington managed to muster the support of
leaders
of both parties in Congress for the aid request. A joint letter written by
Senate Majority Leader Bill Frist and Senate Minority Leader Tom Daschle
stated that Israel is facing severe challenges in both the economic and
security spheres, and that, given the decline in the Israeli economy over
recent years, the United States should provide support.

The letter stated, "We are concerned that, if not addressed soon
 Israel
is
in danger of mortgaging its future qualitative military edge. We cannot
allow
this to happen." The letter also stressed that the Israeli economy must
undergo far-reaching reforms in order to extricate itself from its current
malaise.

Similar letters have been sent to Bush by the Speaker of the House Rep.
Dennis Hastertt (R-Ill.) and House Minority Leader Nancy Pelosi (D-CA).
The
fact that senior figures from both parties are signatories on these
letters
will certainly smooth the passage of the request through Congress.



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